Why Choose the Thaiger?
Setting up or running a business in Thailand is a time-consuming and delicate process. At the Thaiger, we provide guidance and services to ensure that you and your company run smoothly and without any issues.
What is Tax/VAT Registration?
When setting up a business in Thailand, you need to register with the Department of Revenue to get a Tax Identification Number. Depending on the type of your business, you may also need to register your company with the Value Added Tax (VAT) system as well.
The corporate tax rate is typically 30% of your company’s net income, while the VAT rate for personal income tax is currently at 7%. Your company must file VAT returns on a monthly basis.
We understand that doing Tax/VAT registration can be a hassle. That’s why we’re here to help you with the processes.
The Procedure of Tax and VAT Registration in Thailand
The General Tax/VAT procedure and guidelines in Thailand will be provided in the section below:
The first thing you need to do is prepare all of the required documents. These documents provide specific information about your business.
Fill the Registration Form
Anyone who wants to register for Tax/Vat will be required to fill an application form. You will then have to submit this form along with the required documents.
Meet the Requirements
The company or individual subject to VAT is required to meet the VAT return filing schedule after the notice of registration has been issued.
Once you have submitted the form and the required documents, all you need to do is wait for approval, which usually takes 1 or 2 working days.
Which Businesses Are Exempt From VAT Registration?
Some businesses in Thailand are exempt to register VAT. Below is a list of businesses that don’t need to register for VAT.
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They called me as soon as I inquired, literally so fast! I’ve already submitted the relevant documents. Now waiting for the next process. So far so good.
Wang Su Yang
If you are new to doing business in Thailand, I would recommend that you try their service, it’s a very quick and effective method to get Vat services in Thailand.
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What is Tax/VAT in Thailand, and when should I register?
Below is a more comprehensive description of Tax and VAT, the types of companies required to register for Tax/VAT, and when you need to register.
We can help you register for Tax, VAT, or both.
All companies registered under Thai law are subject to taxation.
Within the first two months of beginning operation, your business must register corporate income tax and obtain a tax number and ID card from the Revenue Department.
The corporate tax rate is usually 30% of your company’s net income. You must file two returns with the Revenue Department annually. The first return is filed two months following the end of the first six months of your company’s tax year. You have to pay half of the estimated taxes projected for the entire year when you file this return. The second return is filed within 150 days of the end of your company’s tax year. You must pay the total remaining tax due when you file the second return.
- You must register within the first two months of your company’s operation.
- The general income tax rate is 30% of your company’s net income.
- You need to file two returns to the Revenue Department annually.
If your company has a gross income of 300,000 THB or month in a month, or 1,800,000 THB or more per year, and you sell goods or supplies services that are liable to VAT, you must register with the VAT system. You must also register for VAT if your company imports goods.
You need to register for VAT within 30 days of reaching the income threshold and file a VAT return monthly. Currently, the VAT rate in Thailand is 7%.
Some types of services, as listed above, are exempt from VAT. There are also some businesses that are zero-rated. If your business is not required to register with the VAT system, you may still do so voluntarily.
- A company with a gross income of at least 300,000 Baht a month or 1,800,000 Baht a year must register with the VAT system.
- The current VAT rate is 7 per cent.
- You need to file VAT returns monthly.
Personal income tax is a direct tax levied on personal income, including an individual, an ordinary partnership, a non-juristic person, or undivided estate.
Personal income tax will compute and charged on an annual basis. Typically, this tax is only levied from the person who receives income that sources within the country. However, if you are residing over 180 days and receive income from foreign sources during the same year, you may also be subjected to income tax.
Nevertheless, if your income is not over 150,000 baht per year, the income tax will exempt.
- Personal income gets charged on an annual basis.
- Can still be subjected to income tax.
Stamp duty tax: It’s applied to the execution of instruments prescribed to stamp tax. The tax rate is between 0.05 to 1% of the instrument’s value.
Excise tax: This tax will be levied from the manufacturer, merchant, or importer who sells goods such as tobacco, liquor, soft drink, etc.
Property tax: This tax may be imposed on the owners of commercial buildings and vacant land areas on mountains or in water basins.
- Certain businesses can and will be taxed differently.
- Taxation depends on what business you are conducting.
Setting up your Tax and Vat for your company in a few simple steps.
I really don’t understand about tax/VAT in Thailand at all. I tried to do it myself, but I got lost in the processes and don’t really know or understand anything. Thank you the Thaiger and your support team for taking care of this task for me.
Top tip: The support team will gladly help you solve any issues.
Monthly and Yearly Reports for Tax and VAT
Monthly Report – A monthly VAT report will contain all sales and business transactions, which are required by the Revenue Department. Usually, a business has monthly reports summarising a variety of different types of operations. This includes information on receivable and payable accounts, salaries, and tax withholding.
Withholding tax records include information on all taxes raised by deductions from salaries and payments for services. The company is expected to file a monthly report and resubmit the withheld tax and report on social security payments for each employee of the company.
Yearly Report – The Department of Revenue of Thailand requires businesses to report their financial statements. The yearly reports must include profit and loss, cash flow, equity change, and the balance sheet. the company will report financial statements that contain all financial details related to the company at the end of the year.
Other Related Products
We offer various other corporate services for your business in Thailand.
BOI Thailand Services
The Thailand Board of Investment (BOI) is a government body to encourage foreign investment in Thailand. Being certified by BOI can give your business a range of benefits.
Requirement documents for Tax/VAT registration
Here is some additional information about Tax and VAT registration in Thailand. Check out the section below for what required documents you should prepare for the registration.
A set of house registration copies and ID card of the owner with an approval signature attached.
A set of house registration copies of the company building with the signature of the owner attached.
Identification of the Owner
A set of ID card copies of the business director copy and signature attached.
Company headquarter photos.
A set of company map copies with the certificate and signature of the owner.
A set of rental contract copies in case you are renting the building.
You must bring a copy of your companies registration documentations.
Starting a business while managing your accounts efficiently is difficult. That’s why a company cannot exist or operate without the help of professional accountants. Accountants play a significant role in numerous things, including tax preparation services, auditing, bookkeeping, and consultancy.
The Thaiger can help you manage and run your business in Thailand and help you understand tax liabilities and accounting services in Thailand.
Frequently Asked Questions About Tax/VAT Registration
There are many stages of gradation, from 0 % for earnings below 150,000 Baht, to 30% for earnings over 4 million Baht. VAT in Thailand is imposed at a flat rate of 7%.
It depends on how serious the case is. However, there can be a fine between 1,000 baht and 200,000 baht.
- An international business division that earns from sources within Thailand.
- A Mutual project.
- Associations and foundations.
- Limited companies.
VAT refers to a tax on the selling of goods or products, there will be a charge of 7% from the original price.
Inquire Now to Register Your Tax/VAT